Initial settlements for November US propylene contracts were heard at down 6 cents/lb, market sources said Friday afternoon.
The settlements put polymer-grade propylene at 58 cents/lb and chemical-grade propylene at 56.50 cents/lb, with one major buyer confirming the levels.
The decrease followed a steep 14-cent drop seen from September to October and reflected propylene's overall weakness in the spot market amid slow demand from downstream markets and length, particularly in the refinery-grade propylene market.
Initial nominations from producers called for a 3- to 4-cents/lb drop. Sources later said one producer had renominated at down-6 cents/lb, setting the tone for the eventual settlement, which for the most part met market participants' expectations.
US spot polymer-grade propylene was last transacted for November earlier this week at 58.50 cents/lb. January PGP traded at 60.25 cents/lb MtB EPC on Thursday. It was last assessed Nov. 4 at 58.25-58.75 cents/lb, and CGP was assessed at 55.25-55.75 cents/lb on a delivered USG basis.
Spot RGP was last assessed Thursday at 46.25 cents/lb on a delivered-Houston area basis.
